How Ecobank Is Helping Businesses Thrive Under Afcfta

By opening up access to market opportunities beyond national borders, this trade agreement can help African businesses expand their production capacity, modernise their business operations, and create more jobs across their supply chains.

AfCFTA, which became operational in 2021, aims to eliminate most tariffs on goods and services traded among African Union member countries while enabling the free movement of businesspeople and capital. According to estimates by the World Bank, the AfCFTA will increase Africas income by USD450 billion, increase intra-African exports by more than 81 and boost the continents GDP by 7 by 2035.

However, Souleymane points out that African businesses, notably SMEs, face several challenges in accessing the opportunities that the AfCFTA presents. A significant obstacle holding back SMEs is limited visibility of market opportunities in different countries on the continent. Financing also remains a significant hurdle. Indeed, the International Monetary Fund IMF estimates that nearly half of the 40 million SMEs active in sub-Saharan Africa lack access to credit, despite these enterprises accounting for 90 of businesses on the continent and employing 60 of the workforce.

Moreover, a significant number of African SMEs operate in the informal sector, which presents its own unique set of challenges. These enterprises often lack official registration, proper governance structures, and standardised accounting practices, making it difficult to secure loans and investments from formal financial institutions. The informal nature of these businesses also means they are less likely to benefit from government policies and initiatives aimed at supporting SMEs.

Souleymane emphasises that these challenges need to be addressed definitively so that African SMEs can reap the full benefits of the AfCFTA. He reveals that Ecobank is at the forefront of empowering SMEs to overcome these challenges through its Ecobank Single Market Trade Hub . Launched in 2023, this platform connects registered businesses across Africa and allows them to capitalise on opportunities within the unified market created by AfCFTA.